Court rules pay in lieu of notice and a labelled exit are within employer rights
A long-serving worker sued his employer over a termination he called a "disguised retrenchment." The court tossed the case out entirely.
On 11 May 2026, the General Division of the High Court of Singapore struck out a wrongful dismissal claim brought by Seng Hock Chye Daniel against Denso International Asia Pte Ltd. The decision, delivered by Assistant Registrar Ramu Miyapan, offers a useful reminder for HR leaders about how Singapore courts view termination disputes, retrenchment benefits, and the limits of tripartite guidance.
The facts are straightforward. The claimant had been employed by Denso since around May 2005. His employment was terminated on 1 October 2024 after roughly 19 years, 4 months and 7 days of service, and he was paid salary in lieu of notice.
He pushed back hard. The claimant brought a claim for wrongful dismissal, alleging that the termination was carried out in bad faith as a disguised retrenchment to deprive him of retrenchment benefits, and seeking damages including for psychiatric harm, distress, humiliation and loss of reputation. He also alleged that the company's post-termination references to his performance were a cover story invented after the fact, and that he had developed adjustment disorder with depressed mood as a result of losing his job. Those allegations were not tested at a trial because the company applied to strike out the claim before it could get...
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